The Canadian cannabis operations of U.S. produce company Village Farms International reported net income of 200,000 Canadian dollars ($148,000) and positive adjusted EBITDA of CA$6.7 million for its third quarter period ended Sept. 30.
The net income stands out in a Canadian cannabis industry where, so far, most of the profit has gone to government-owned businesses.
However, Village Farms’ net income figure for the quarter was 97% lower than the same period one year ago.
“The strong performance in our Canadian cannabis business in the third quarter reflects the successful execution of our growth strategy and investments as we achieved another sales record, outstanding growth in retail sales, and our 16th consecutive quarter of positive adjusted EBITDA,” Village Farms CEO Michael DeGiglio said in a statement issued Wednesday.
Canadian cannabis net sales increased 15% year-over-year to CA$39.8 million in the quarter ended Sept. 30.
Total market share by Village Farms’ two Canadian cannabis subsidiaries – British Columbia-based Pure Sunfarms and Quebec-based Rose LifeScience – grew to No. 1 in Canada in October, the company said in its earnings release, citing data from HiFyre and Weed Crawler.
Village Farms also said Pure Sunfarms maintained its No. 1 market position for dried flower in Canada in the quarter.
In the U.S. cannabis market, Village Farms’ Balanced Health Botanicals recorded net sales of $5.1 million (CA$6.9 million), up from $3.8 million
“Internationally, we continue to steadily move forward on multiple opportunities in select additional markets,” DeGiglio said.
“Sales to Australia have accelerated through this year spurred by market growth and consumer brand affinity, with third quarter sales more than tripling from the first quarter of this year.”
He said the company is progressing toward commencing shipments to Germany and Israel.
Shares of Village Farms trade as VFF on the Nasdaq exchange.